Donating Appreciated Securities

When you contribute assets to a CF you can potentially give more to charity and pay less in taxes.* This chart demonstrates the tax and giving advantages of contributing appreciated assets to a donor advised fund. In this example, $100,000 in long-term appreciated securities are being donated, with a cost basis, or original purchase price of $30,000.

If donor sells securities and donates the cash proceeds to the charity of his choice

If donor contributes the securities directly to CF

Value of appreciated securities:

$100,000

$100,000

Donor’s capital gains tax (15% of $70,000):

$10,500

$0

Donation amount received by charity:

$89,500

$100,000

Total Tax Deduction(assumes 35% bracket and 15% capital gains tax):

$20,825

$35,000

* In the example above, the donor realizes a 41% savings in taxes and $10,500 more given to charity.